China, Hong Kong shares rise on bargain hunting


SSEC flat, CSI300 gains 0.1%, HSI 0.2% higher

China says U.S. needs to fix 'wrong actions' as Huawei ban rattles supply chains

Trump says 'dangerous' Huawei could be included in U.S.-China trade deal

SHANGHAI, May 24 (Reuters) - China and Hong Kong stocks firmed on Friday morning on bargain hunting following steep losses in the previous session, though gains were capped as investors tread cautiously amid fears over deeper U.S.-China trade war.

** The CSI300 index .CSI300 rose 0.1% to 3,587.62 at the end of the morning session, while the Shanghai Composite Index .SSEC was unchanged at 2,851.40.

** The Hang Seng index .HSI added 0.2% to 27,323.09, while the Hong Kong China Enterprises Index .HSCE gained 0.3%, to 10,433.93.

** U.S. President Donald Trump said on Thursday that Washington's complaints against Huawei Technologies HWT.UL might be resolved within the framework of a U.S.-China trade deal, while calling the Chinese telecom giant "very dangerous."

** The U.S. Commerce Department said on Thursday it was proposing a new rule to impose anti-subsidy duties on products from countries that undervalue their currencies against the dollar, another move that could slap higher tariffs on Chinese products.

** China said the United States needs to correct its "wrong actions" in order for trade talks to continue after it blacklisted Huawei, a blow that has rippled through global supply chains and battered technology shares.

** The Sino-U.S. trade issue's impact on the market is expected to be less than 2018, as the U.S. "toolkit" has been relatively fully used, while China's internal environment is better than last year, Northeast Securities noted in a report.

** Given the changes in internal and external environments, the possibility of China using countercyclical policies to hedge internal and external risks increased, the brokerage added.

** Around the region, MSCI's Asia ex-Japan stock index .MIAPJ0000PUS was weaker by 0.14%, while Japan's Nikkei index .N225 was down 0.45%.

** The yuan CNY=CFXS was quoted at 6.9136 per U.S. dollar, 0.03% weaker than the previous close of 6.9116.

** The largest percentage gainers in the main Shanghai Composite index were Jiangxi Guotai Group Co Ltd 603977.SS, up 10.06%, followed by Tianjin Songjiang Co Ltd 600225.SS, gaining 10.06% and Veken Technology Co Ltd 600152.SS, up 9.98%.

** The largest percentage losers in the Shanghai index were Fujian Start Group Co Ltd 600734.SS, down 9.99%, followed by Elion Energy Co Ltd 600277.SS, losing 9.95% and Sichuan Western Resources Holding Co Ltd 600139.SS, down by 9.87%.

** So far this year, the Shanghai stock index is up 14.38%, while China's H-share index is up 2.7%. Shanghai stocks have declined 7.34% this month.

** The top gainers among H-shares were China Gas Holdings Ltd 0384.HK, up 3.61%, followed by Guangdong Investment Ltd 0270.HK, gaining 3.58% and Huaneng Power International Inc 0902.HK, up by 2.45%.

** The three biggest H-shares percentage decliners were China Tower Corp Ltd 0788.HK, which has fallen 1.74%, China Huarong Asset Management Co Ltd 2799.HK, which has lost 1.5% and PetroChina Co Ltd 0857.HK, down by 1.3%.

** As of 0416 GMT, China's A-shares were trading at a premium of 25.36% over the Hong Kong-listed H-shares.

China stock market graphics suite

(Reporting by Luoyan Liu and John Ruwitch; Editing by Rashmi Aich)

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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